Massachusetts begins distribution of excess tax revenue refunds.

On November 1, 2022, the Massachusetts Department of Revenue (DOR) began distributing $2.941 billion in tax refunds in accordance with Chapter 62F, a Massachusetts law that requires tax revenue collected in excess of an annual cap to be returned to taxpayers. Refunds will be provided in proportion to a taxpayer’s tax year 2021 Massachusetts income tax liability. An estimated three million taxpayers will receive a refund equal to 14% of their 2021 Massachusetts income tax liability (up from a preliminary estimate of 13%). Refunds will be issued via direct deposit or mailed as a check. Refunds issued by direct deposit will be labeled “MASTTAXRFD.” Approximately 500,000 refunds will be distributed during the first week. Approximately one million refunds will be distributed weekly thereafter until all currently eligible refunds have been distributed. Taxpayers who have already filed their 2021 tax return and had a tax liability will automatically receive their refund by December 15, 2022—no action is needed. Individuals who have not yet filed their 2021 tax return but file by September 15, 2023 will be eligible to receive a refund. Such individuals, if eligible, will receive their refund automatically approximately one month after filing. Note that an individual’s credit may be reduced due to refund intercepts, including for unpaid taxes, unpaid child support, and certain other debts. (Press Release: Distribution of Excess Tax Revenue Refunds Begins November 1, 2022, Mass. Dept. Rev., 10/31/2022.)